Thursday, November 6, 2014

Bailee Insurance explained!

What is Bailee Insurance?

If your business has temporary possession of someone's property, Bailee insurance covers liability for damage or destruction of that property while under your care or custody. It this case, you are considered a "bailee" of that property.

When you have a client’s property in your possession for storage,
repair or servicing, your exposure to the risk of damage is
significant. If something were to happen to your
customers’ property, even if it is completely out of your control, you
could be held responsible. Depending on the type of business and the
techniques used to service or store property, the financial consequences
of loss or damage to a customer’s property could be substantial.

You may have coverage for your business and the premises where you operate your business, but this only covers your assets and not temporary property in your possession. It's important to have Bailee Insurance at the Lake of the Ozarks to cover the temporary property that you are in custody of or in care of!
Cleaners, repairers,
warehouses, hospitality organizations and other businesses that work on
or hold customers’ possessions need a Bailee Coverage Policy to protect themselves from this risk. Losses to customers’ property due to perils
including fire, lightning, theft, burglary, robbery, windstorm,
explosion, collision, floor, sprinkler leak, earthquake, strike, and
damage or destruction in transportation can all be covered with Bailee Insurance.

Insure the Lake also offers Bailee insurance to cover other unexpected things that can go wrong. We offer several coverage options that can cover your business even if
it's difficult to accurately estimate the value of the property you are caring for. This can include the following:

✔ Unlimited Bailee: By purchasing Unlimited Bailee
Coverage, you will eliminate the need to accurately estimate the value
of the property you would like to insure. Your risk of underestimating the value of property and paying the difference on
a claim is minimal.

✔ Damage in Process: This option provides coverage
for operator errors when repairing or servicing an item. An example - if you have a refrigerated warehouse, products could be stored at a temperature
other than that requested causing the products to become contaminated. In addition, goods
could disappear, products could break and poor maintenance could cause
damage.

✔ Mysterious Disappearance: This option provides coverage if a customer's property is misplaced

Keep in mind that Bailee insurance does not cover flood insurance. You should always carefully review your policy to ensure that you
understand all exclusions. Give Insure the Lake a call and we will talk with you to determine if Bailee coverage is needed for your business, the level of insurance to make sure you are protected, and any other property or liability needs.